The RBS group is a large international banking and financial services company. From its headquarters in Edinburgh, the Group serves over 30 million customers in the United Kingdom, Europe, the Middle East, the Americas and Asia. (http://www.rbs.com, 2013).
1.1 Overview of the case study: RBS computer failure caused by inexperienced operative in India. (By Hannah Furness)
In the case of computer failure has happened to RBS, their party has responded that it is a good thing, even something that is not good. The good news is because they are aware of how sensitive they need in dealing with its outsourcing process. Moreover, the bad, they should pay compensation to their clients. Besides, as the problems persisted, the response became less effective.
The problem had caused a core payments system goes down, people cannot pay for the things they need, companies cannot function, commerce grinds to a halt and economies fail. However, the IT failure that hit RBS will cost the bank more than predictable as £50m is paid to customers in compensation. Perhaps, in order to redeem some of the confidence and trust from their client, they have lost what they need to be more open about the root cause of the failure.
Summary of the case study
In view of the difficulties experienced by the RBS, they should be more sensitive in doing outsourcing. This is because, in the event of his problems as already stated, it would be disadvantageous sides. RBS own behalf, they should pay damages and the shame of the problems that have occurred. They also face difficulty to get back the trust and confidence from their client. In addition, those parties should also not blame the technician. This is because it will present to the public that the RBS is not resp...
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...g Allows Distribution Companies to Gain Competitive Advantage [online] 1-3 available from http://www.capgemini.com/resource-file-access/resource/pdf/b_Outsourcing_Allows_Distribution_Companies_to_Gain_Competitive_Advantage.pdf [19 December 2013]
Leonard Hook, Kairos Group International (2004) Strategic Outsourcing for Competitive Advantage [online] available from http://www.aipmm.com/html/newsletter/archives/000059.php [8 December 2013]
Luke Arthur, Demand Media (2013) Does Outsourcing Information Technology Provide a Competitive Advantage? [online] available from http://smallbusiness.chron.com/outsourcing-information-technology-provide-competitive-advantage-30632.html [10 December 2013]
Mike Hill, Itica Consult (2012) RBS Computer Problems – What can we learn? [online] available from http://itica.com/blog/rbs-computer-problems-what-can-we-learn/ [10 December 2013]
In addition to the problems caused by the technology glitch, there were issues with how the company handled the crisis with its customers. At first the bank publicly announced the problem would be resolved in three days. When that day came they needed another three to four days to continue to deal with the problem. The bank’s CEO left the country when he was told that everything would be operating normally three days after the error occurred. As customers continued to experience problems in the days after the initial problem, there was no one single person to manage the public relations with the bank’s stakeholders.
Despite being a smaller company than Datatronics, E-ZRP managed to outperform Datatronics in the quality of customer service. The key issues for this case study, which form the basis of the recommendations that Matt will present to the chief information officer, are founded on the drastic differences that exist in the customer service arrangements between Datatronics and E-Z RP. The areas of difference include the customer service philosophy, service representatives, link to developers, organization, training, tiered support, performance metrics, technology, and the hiring criteria of customer service representatives. At Z-Z RP, customer service representatives are considered a valuable part of the IT and business teams. The philosophy at E-Z RP is that the customer service enables improved products. The CSRs are highly skilled and knowledgeable on the company’s business and products. The CRS...
Outsourcing relationships demand the same care and attention to sound management principles and practices as do in-house operations and valued employees. Managed well, continuous improvement, increasing value, and constant innovation can be expected. Managed poorly, the services and overall relationship deteriorates resulting in higher costs, operational disruption and lost business opportunities.
Kesavan, R., Mascarenhas, O. A., & Bernacchi, M. D. (2013). Outsourcing Services to India: A Review and New Evidences. International Management Review, 36-44.
Rao, K., and Young, R. R. (1994) Global supply chains: Factors influencing outsourcing of logistics functions. International journal of physical distribution and logistics management. Vol. 24. No. 6.
The Chief Executive of RBS, Stephen Hester defended outsources company and said that there was no evidence that the problem is due from company outsources. The error is occurred after the software upgraded to the bank’s computer system last Wednesday, and it affects 17 million customers. Although the problem can be resolved on Friday, but RBS has a backlog of more than 100 million transactions that were not paid in or out of the bank.
The Royal Bank of Scotland or RBS is a large international banking and financial services company. RBS has servers over 30 million of customers in the United Kingdom, Europe, the Middle East, the Americas and Asia. RBS have been open at many country around the world. RBS is a bank that providing bank account, personal banking, online banking, saving, credit card, loans and many more.
The summary we can make after read the case study is the system down in RBS Company has make the million of customer unable to access their account. The management in Royal Bank of Scotland (RBS) have found people who have caused the problem which is the junior technician from India, who accidentally erased a massive swathe of information during a routine software upgrade...
This is about computer failure of Royal Bank of Scotland (RBS) that happens in India. It is said that it happens because of “inexperienced operative” by Indian staff when doing software upgrade. It is also a blame that the problem occurs because of outsourcing. But, it has been opposed by Stephen Hester, the chief executive of RBS. However, it is already happen and the company needs to responsible to what had happen. The company has to bear losses from 17 million customers that are more than 100 million transaction and all the losses is cost up between £50 million and £100 million.
I was given a task by Madam Manaf to complete the Business Information management assignment about RBS computer failure 'Caused by inexperienced operative in India'. This assignment tells about the computer glitch at the Royal Bank of Scotland which left millions of customers unable to access their accounts could have been caused by just one junior technician in India.
[4] Gupta, Sachin. For a global software company, outsourcing began at inception . World Paper. April 19. 2004 http://www.worldpaper.com/2004/april/april4.html
The assignment research objectives were (a) to gain insight into securing strategic partnerships in the information technology (IT) arena; (b) to understand the choices made to reduce information and security risks by exploring the different outsourcing techniques, and; (c) to understand how business process associated with outsourcing will stimulate awareness on how the process is interlinked with human behaviors. The topics covered include an evaluation of the specifications of information security consultants to become strategic partners assisting in the reduction of information or security risks, an examination of four factors that were omitted in the specifications that add value to the selection process, and an explanation of the value of the four factors.
Almost every process of day to day life is controlled by computers and the banking sector is one of them. Every bank has adopted computer integrated systems to make their process easier and it does. Minor computer malfunctions causes major glitch to banks as the complete system is depended on computer and software. We can take the example of latest computer crisis faced by Royal Bank of Scotland (RBS). This system failure caused major damages and millions of customers faced difficulties to access their account, all this happened because of inexperienced operator in India as per the reports.
This is about computer failure of Royal Bank of Scotland (RBS) that happens in India. It is said that it happens because of “inexperienced operative” by Indian staff was accidentally wiped information when doing software upgrade. It is also a blame that the problem occurs because of outsourcing. But, it has been opposed by Stephen Hester, the chief executive of RBS because there was no evidence that outsourcing had caused the problem. However, it is already happen and the company needs to responsible to what had happen. Even though the problem was solved in three days, the company has to bear losses from 17 million customers and it created a backlog of more than 100 million transaction and all the losses is cost up between £50 million and £100 million.
In this case study it was stated that there were a problem happen in the outsourcing for the Royal Bank of Scotland. What happen was there were an error that happen during the routine software upgrade that cause million of that bank customer cant access to their account. The error happen when one junior technician in India was accidently wiped all the information during the routine software upgrade. The member of staff that was working under the program for the Royal Bank of Scotland, NatWest and Ulster Bank and it was based in Hyderabad, India.